Archive for Corporate

Cash Flow: The Pulse of Your Business

Cash flow is the lifeblood of any small business. Some business experts even say that a healthy cash flow is more important than your business’s ability to deliver its goods and services! While that might seem counterintuitive, consider this: if you fail to satisfy a customer and lose that customer’s business, you can always work harder to please the next customer. If you fail to have enough cash to pay your suppliers, creditors, or employees, then you’re out of business!

What is Cash Flow?

Cash flow, simply defined, is the movement of money in and out of your business; these movements are called inflow and outflow. Inflows for your business primarily come from the sale of goods or services to your customers but keep in mind that inflow only occurs Read More

Written by | Posted in Corporate • Federal • Income Tax • Individual • Small Business

June 2015 Business Due Dates

June 15 – Employer’s Monthly Deposit Due

If you are an employer and the monthly deposit rules apply, June 15 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for May 2015. This is also the due date for the non-payroll withholding deposit for May 2015 if the monthly deposit rule applies.

June 15 – Corporations

Deposit the second installment of estimated income tax for 2015 for calendar year corporations.

June 30 – Taxpayers with Foreign Financial Interests

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Written by | Posted in Corporate • Small Business • Tax Provision/Tax Reporting

May 2015 Business Due Dates

May 11 – Social Security, Medicare and Withheld Income Tax

File Form 941 for the first quarter of 2015. This due date applies only if you deposited the tax for the quarter in full and on time.

May 15 – Employer’s Monthly Deposit Due

If you are an employer and the monthly deposit rules apply, May 15 is the due date for you to make your deposit of Social Security, Medicare and withheld income tax for April 2015. This is also the due date for the non-payroll withholding deposit for April 2015 if the monthly deposit rule applies.

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Written by | Posted in Corporate • Income Tax • Small Business

Hillary Clinton Proposes Tax Increases

Here we go again! It is campaign season and some candidates just cannot wait to say how they are going to penalize business. Hillary Clinton is proposing a new scheme where businesses that manufactured things will be tax differently than businesses that are “trading” items. I am not exactly sure what this means but it sounds to me like a tax increase on service businesses and for people who invest in business.

Let us face it, manufacturing has been on a continual decline in this country for the past 60 years. The US is known for producing intellectual property and services that are the envy of the world. Hillary Clinton, as well as some of her tax and spenders just do not get it! If you increase taxes on something you will get less of it. Increase tax on business and you will have less business in the US. Read More

Written by | Posted in Corporate • Federal • Small Business

AVOID PENALIZATION! Business Taxes Due Next Week

File An Automatic Extension Request TODAY – IRS Form 7004

The Business and Partnership Tax deadline is coming up fast! Don’t sweat it!

File IRS Form 7004 to apply for Automatic Extension of Time to File Certain Business Income Tax.

If you happen to be compelled, feel welcome to check out the instructions for IRS Form 7004.

If you need help, contact me and one of my trusted lieutenants will take care of this for you TODAY. Read More

Written by | Posted in Corporate • Income Tax • IRS • Partnership

Corporate Tax Reform: An Illusion Or A Reality?

It has been a rallying cry that is as old as time and that rivals that of the standing ovation that the Rangers receive after scoring a power play goal: “Corporate tax in this country needs to be reformed.” Who is leading the charge? America’s chief executives. What is responsible for catapulting this into the public eye? None other than the nation’s aging tax code, which has been blamed for putting U.S. multinational corporations at a competitive disadvantage in the global marketplace.

As tax reform chatter grows louder, chief executives have become more outspoken. Timothy D. Cook, Apple’s chief executive, told lawmakers, “Apple has recommended to the Obama administration and several members of Congress — and suggests to the subcommittee today — to pass legislation that Read More

Written by | Posted in Corporate • IRS • Tax Policy

Staff Reductions & Insufficient Funding Will Dramatically Impact IRS in 2015 And Beyond

Last Tuesday, IRS Commissioner John Koskinen addressed the New York State bar Association Tax Section in New York. His comments provide keen insight into the going-on’s at the IRS. Mr. Koskinen’s most important announcement centered on the agency’s anticipated reduction in the number of rulemaking projects as a result of budgetary constraints.

Although releasing guidance is one of the agency’s core functions, there are simply not enough attorneys in the Office of Chief Counsel to shoulder the burden. Nor are there any plans on the horizon to hire more workers, in light of the agency-wide hiring freeze.

“Our office of chief counsel continues to make every effort to issue guidance in a timely Read More

Written by | Posted in Audit • Corporate • Federal • IRS • Partnership

Regulation 105 Withholding Tax For Services In Canada

Regulation 105 Withholding Tax for Services Rendered by Non-Resident

Do you engage foreign individual or company (collectively referred to as “non-resident person”) as independent contractor to provide services in Canada?  Are you the non-resident person providing independent contractor services in Canada?  If you answer yes to either question, do you know that payments made in respect of services rendered in Canada by non-residents are subject to Regulation 105 withholding at a rate of 15%?  There is an additional 9% withholding if the services are rendered in the province of Quebec by non-residents.  These withholding requirements simply act to ensure that non-resident recipients of the service payments pay any Canadian income tax duly owing. Read More

Written by | Posted in Canada • Corporate • Income Tax • Individual • International • Tax Planning • Tax Tips

FLASH ALERT! WOTC: IRS Notice 2015-13: Providing Transition Relief For Employers Submitting Late WOTC Applications

We Have Been Waiting For This!

The IRS has released IRS Notice 2015-13, which provides transition relief given the late retroactive renewal of the Work Opportunity Tax Credit program in December 2014. Notice 2015-13 waves the 28-day deadline for submitting IRS Form 8850 (the WOTC Pre-screen Notice) for qualifying employees hired in 2014.  The extended deadline for submitting the applications for affected employees is now April 30, 2015.

From the Notice:

 

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Written by | Posted in Affordable Healthcare Act • Africa • Audit • Corporate • Federal • International • IRS • North America • Partnership • State And Local Tax (SALT) • State Tax • Tax Controversy • Tax Deductions • Tax Policy

LLC Income is INDEED Subject to Self Employment Tax: IRS Chief Counsel Advice 201436049

In 1997, the IRS issued proposed regulations governing when the distributive share of partnership income for Limited Liability Company (LLC) members was to be included in self-employment income. It basically advised that an LLC member would be treated as a limited partner — and thus the distributive share would NOT be self-employment income– unless the LLC member either:

• had personal liability for the debts of the LLC under state law (this would be pretty rare)
• had authority under state law to contract on behalf of the LLC, or
• participated in the trade or business of the LLC for more than 500 hours during the year.

This is significant because the treatment of an LLC member’s distributive share of Read More

Written by | Posted in Corporate • IRS • Partnership

The Senate Finance Committee Outlines Tax Reform Principles

On Thursday, January 29th the Democrats on the Senate Finance Committee (hereinafter “the Committee”) issued a letter to the Republican Chairman, Orrin Hatch, R-Utah, outlining their main principles for tax reform that emphasizes first that the tax reform process should go through “regular order” and not the budget reconciliation process. “Reconciliation imposes tight restrictions, such as the Byrd rule, that could inhibit our work by forcing us to focus on procedural intricacies rather than good tax policy,” said the Senate Democrats in their letter. “Using, or even the implicit threat of using, the reconciliation process for tax reform would destroy the necessary bipartisanship that made the 1986 reform effort so successful.” Other principles cited by Senate Democrats include making reforms more progressive than current tax policy, and reducing the Read More

Written by | Posted in Capital Gains • Corporate • International

Revenue Guidance Documents Following Finance Act 2014 (Ireland) – Part VI (Final)

A number of Revenue Guidance Documents have been introduced following Finance Act 2014 being signed into law on 23rd December 2014.

6. Capital Gains Tax – Finance Act 2014 – Vodafone Shareholders – eBrief no. 107/14 (24th December 2014).

On 14th May 2014 the Irish Revenue Authorities issued a detailed Tax Briefing outlining the tax treatment of the Vodafone Return of Value to its Shareholders. I wrote an Explanatory Blog, which was published on this site on 16th May 2014, outlining the comprehensive guidance on the calculation of the base cost for Capital Gains Tax purposes. In my Blog, I discussed the Income Tax Treatment for shareholders who opted for “C Shares”: Read More

Written by | Posted in Capital Gains • Corporate • Europe, Middle East • Tax Deductions
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